Virgin Media O2 has reported a decline in sales and profits for the first three months of 2026, as it continued to lose fixed line and mobile customers in a challenging market. The telecoms group posted a net loss of 6,900 fixed line household customers, though this marked an improvement of 38,000 compared with the same period last year.
The company also shed 61,500 consumer and business mobile contracts on a net basis, narrowing from a net loss of 70,300 a year earlier. Underlying revenues, adjusted for the recent acquisition of Daisy, fell by 6.5% to £2.39 billion in the first quarter, while underlying earnings dropped 3.4% to £901.7 million. For the full year, Virgin Media O2 expects revenues and earnings to decline by between 3% and 5%.
Despite the downturn, the company is investing up to £2.2 billion in its networks over 2026, including more than £500 million in the first quarter. Chief executive Lutz Schuler described the year as one of navigating a turbulent market while investing to future-proof networks and build long-term customer trust. He noted the launch of O2 Satellite, the expansion of 5G Standalone coverage, and continued improvements in customer service.
Virgin Media O2 said customer complaints fell by 42% year-on-year in the first quarter. The company acquired Lancashire-based telecoms group Daisy in May 2025 to strengthen its business operations. The customer losses come amid recent price hikes, including tariff increases announced in October 2025 for mobile and broadband customers from April 2026.
